Techno Electric Eyes Rs 4,000-Crore Order Inflows In Current Fiscal
The power infrastructure company has already achieved about Rs 1,600 crore in Q1, according to Managing Director Padam Prakash Gupta.
Techno Electric and Engineering Co. expects an order inflow of Rs 4,000 crore in FY25 after posting a strong first quarter performance.
Padam Prakash Gupta, managing director of Techno Electric and Engineering, told NDTV Profit that the order inflows "should be around Rs 4,000 crore and may exceed Rs 4,000 crore also."
Of the total projected new orders for the current financial year, the company has already achieved Rs 1,600 crore in the first quarter, he said, adding, "We are also L1 in another Rs 1,200 crore, which should crystallise in Q2. And Q3 and Q4 should build the rest.”
Commenting on the significant rise in margins and overall performance in Q1, Gupta said, “In our sector, all quarters are not alike. Generally, Q1 is weak compared to Q2. And Q3 and Q4 together contribute nearly 60% of the top line. Margins are sustainable to the extent of the varied performance of the ongoing business.
In Q1, we have earned some income out of the discontinued business, but there’s more in the pipeline to come. We generally account for incomes as and when received rather than as and when we win some regulatory issue in some competent court.”
The company’s total order book currently stands at Rs 9,100 crore. Gupta said that the execution timeline for these orders can stretch up to three years.
“Generally, it ranges from 1.5–3 years and given all kinds of delays, which are inevitable in our industry, you can say in a maximum of three years they have to be executed fully,” Gupta noted.
Partnering IndiGrid
On Aug. 16, Techno Electric informed the exchanges about its partnership with IndiGrid to collaboratively develop two of IndiGrid’s greenfield interstate transmission system projects.
Gupta added that the company’s relationship with Indigrid is not new and that the two companies are currently in the phase of building trust.
“Our relationship with Indigrid is not new. It is an old relationship. They bought two assets from us, one was KT Jhajjar in Haryana and the other was Pattran in Punjab. Now, it is a phase of trust building, having experienced our marquee assets in two locations. So they want to trust us to develop their concessions won by them. Similarly, we will also be transacting the concessions we have won,” the Techno Electric MD said.
Gupta said that Techno Electric’s revenue growth target is Rs 2,500 crore for FY25 and Rs 3,500 crore in FY26.
“We have targeted Rs 2,500 crore this year and it will definitely be achieved. We have enough order books in hand with us and the IndiGrid partnership is also in place. I think it is a very exciting phase, contributed both by conventional power growth and by energy transformation,” he said.
Data Centre Foray
On the company’s plans to enter the data centre space and its partnership with Rategain, Gupta told NDTV Profit that the company plans to deploy data centres at each railway station in the country.
“Date centres are a very exciting space but it is only for companies who are in power. The only material required in the data centre space is power. We have good cash with us and it is a very profitable space. We have a relationship with Rategain now and we will be deploying data centres at each railway station of the country. No less than a hundred of them,” Gupta added.
